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RAYTHEON REPORTS SEVENTH CONSECUTIVE YEAR OF RECORD SALES, EARNINGS, AND EARNINGS PER SHARE

RAYTHEON REPORTS SEVENTH CONSECUTIVE YEAR OF RECORD SALES, EARNINGS,
 AND EARNINGS PER SHARE
 LEXINGTON, Mass., Jan. 20 /PRNewswire/ -- Raytheon Company (NYSE: RTN) reported 1991 earnings of $591.8 million on sales of $9.274 billion, an earnings increase of 6.2 percent. Earnings per share increased to $8.95. Comparable results for 1990 were: earnings of $557.3 million, sales of $9.268 billion, and earnings per share of $8.53.
 The company also reported 1991 fourth quarter results. Earnings were $157.8 million on sales of $2.429 billion, an earnings increase of 9.9 percent. Earnings per share increased to $2.37. For the same period in 1990, Raytheon reported earnings of $143.6 million, sales of $2.456 billion, and earnings per share of $2.20.
 "Raytheon's established commercial diversity was a key contributor to our seventh record year in a row," said Dennis J. Picard, Raytheon's chairman and chief executive officer. "Our Energy segment had a strong growth year, our Aircraft segment improved its results despite a challenging economy, and our Electronics segment maintained a solid base of government electronics activity, with good performance on existing contracts. The Electronics segment is also looking ahead to a number of major new international opportunities."
 Raytheon's total debt decreased from $1.472 billion at the beginning of 1991 to $1.144 billion at year end. Debt as a percentage of equity improved from 51.7 percent at the beginning of 1991 to 34.4 percent at year end.
 At year end, Raytheon's total backlog was $7.969 billion, including funded U.S. government orders of $5.759 billion. At the end of 1990, total backlog was $8.810 billion, including funded U.S. government orders of $6.566 billion. Shortly after the end of the year (Jan. 4), the pending sale of 14 Patriot fire units and 758 Patriot missiles to the Kingdom of Saudi Arabia cleared the U.S. Congress. A contract is expected during the first quarter of 1992. Electronics
 In 1991, Electronics continued to be the company's largest business segment. The segment maintained its leadership position in government electronics systems with demonstrated strong performance in Desert Storm, important new contract awards, and improved productivity and operating performance. Lower 1991 sales in Electronics reflect the timing of key production programs, principally the pending order of the 14 Patriot fire units and 758 Patriot missiles to the Kingdom of Saudi Arabia.
 In 1991, Raytheon received $827 million for additional orders of Patriot hardware and engineering and logistic services, including initial funding against more than $200 million in contracts from the U.S. Army for Patriot upgrades to the radar, launcher, missile, and communications that will substantially increase the system's defended-area coverage against tactical ballistic missiles, aircraft, and cruise missiles.
 Other important contract awards in the Electronics segment in 1991 included a $265 million winner-take-all competitive contract award to produce 5,291 Maverick air-to-surface missiles for use by the U.S. Air Force and Navy; funding of $186 million for 270 Production Lot 5 Advanced Medium Range Air-to-Air Missiles (AMRAAM); a $66.5 million competitive contract, plus $12.6 million in options, to produce the major share of the fiscal year 1991 award of Standard Missile-2 Block III missiles; and initial funding against a $63.3 million contract to provide the Republic of Egypt with upgrades to its Hawk air defense system.
 In other government business, Raytheon was awarded funding for AN/ALQ-184 and AN/SLQ-32 electronic countermeasure systems and for AN/TRC-170 troposcatter radios and MILSTAR (Military Strategic Tactical And Relay) and NESP (Navy EHF SATCOM Program) communications terminals.
 The company also received funding for important naval systems and subsystems, including the Aegis onboard area defense system, the Seasparrow missile system, AN/SPS-49 surveillance radars, Trident guidance electronics, and a shore-based trainer for an advanced submarine combat system. In addition, Raytheon received a contract award for development of the U.S. Navy's next-generation helicopter-towed minehunting sonar, a major new business area for the company.
 Raytheon's Advanced Device Center continued in the forefront of microelectronics. In 1991, the joint venture team of Raytheon and Texas Instruments was selected to receive $83 million to produce gallium arsenide microcircuits under Phase 2 of the tri-service MIMIC (Microwave/Millimeter Wave Monolithic Integrated Circuit) program.
 In non-defense government electronics, Raytheon continued to be a worldwide leader in air traffic control and safety systems, winning an international competition to provide a modernized air traffic control center in Oslo, Norway, including secondary surveillance radars through Cossor Electronics, a Raytheon subsidiary in the U.K. Raytheon continued work on other major air traffic control projects, including the Federal Aviation Administration's Advanced Automation System and Terminal Doppler Weather Radars. Energy Services
 The Energy Services segment reported record sales for the year and a profit growth of 43 percent in 1991. Sales and profit growth were especially strong at United Engineers & Constructors (UE&C) and Badger. Total 1991 year-end backlog for the segment increased 78 percent compared to year-end 1990.
 The segment, which serves a large and diverse customer base in domestic and international markets, won a number of important new contracts in 1991. In October, UE&C was awarded a contract modification for an additional $429 million by the U.S. Army to continue to operate and maintain for five years the nation's chemical agent disposal facility on Johnston Atoll in the Pacific Ocean.
 During the year, UE&C was awarded a contract to start detailed engineering and site preparation for the Tennessee Valley Authority's Cumberland Fossil Plant scrubber project. In addition, the Boston office of UE&C was chosen to provide engineering services for Genzyme Corporation's new biopharmaceutical manufacturing facility in Boston, Mass.
 During 1991, Badger won a contract to build Mobil Oil's major new petrochemical complex in Singapore, work that includes extensive environmental services.
 Badger was also awarded a number of other important engineering projects for water treatment and environmental remediation. Notable among these were refinery wastewater treatment facilities for Sun Oil in Ohio, a major hazardous waste incineration project for Rhone-Poulenc in Texas, three additional incineration projects for Merck, and other environmental projects for major oil companies such as British Petroleum, Mobil, and Citgo.
 Badger's skill and experience in environmental remediation was strengthened by the recent acquisition of McBride-Ratcliff & Associates. Aircraft Products
 The Aircraft segment completed another solid year in 1991 and had a strong fourth quarter. Despite a challenging economy, Beech Aircraft achieved record sales in 1991 and significantly increased profits over the prior year. Total 1991 year-end backlog at Beech increased to $1.141 billion, compared with $914 million at year-end 1990.
 Major highlights in 1991 included the first delivery of the 1900D regional airliner, with orders received for 83 planes; the exercise of a second U.S. Air Force option for the T-1A Jayhawk trainer, a militarized version of the new Beechjet; and the selection of the Beechjet as the training aircraft of Japan's Air Self-Defense Force. In the fourth quarter, Beech introduced significant model improvements to its business turboprop line with the introduction of the King Air C90B and Starship 2000A. Major Appliances
 Amana Refrigeration reported increased sales and profits due to strong refrigerator sales, despite the slowdown in consumer spending. The leading consumer buying guide selected two Amana refrigerator models for No. 1 rankings.
 During 1991, although Appliance segment sales were down, profits increased. The segment, comprised of Amana, Caloric, and Speed Queen, consolidated certain functions to improve operating efficiencies and reduce costs. Other Lines
 Sales and profits in the Other Lines segment were essentially flat when compared to those of 1990. Increased sales and profits at Raytheon Service Company were dampened by lower operating results at Cedarapids and D.C. Heath due to the recession.
 Provisions for federal and foreign taxes were $281.0 million for 1991 and $73.3 million for the year's fourth quarter, compared with $279.6 million and $72.6 million, respectively, in comparable periods the prior year. The effective tax rate was 32.2 percent in 1991, compared with 33.4 percent a year earlier. For the fourth quarter, the effective tax rate was 31.7 percent, compared with 33.6 percent in 1990. Both years are below the statutory rate of 34 percent due to foreign tax credits.
 Earnings per share are based on the average number of shares outstanding during the period. For 1991, there was an average of 66.1 million shares outstanding, compared with 65.3 million during 1990. In the fourth quarter, there was an average of 66.7 million shares outstanding, compared with 65.3 million a year earlier.
 At year end, Raytheon employed 71,600 people worldwide.
 ---
 NOTE FOR MASSACHUSETTS EDITORS: Raytheon reported the following economic impact data for 1991:
 -- At year end, approximately 28,000 of the company's 71,600 employees
 worked in Massachusetts.
 -- Total Bay State payroll: $1.3 billion.
 -- Massachusetts property taxes paid: $9.1 million.
 -- Raytheon purchased $308 million of goods and services from some
 5,500 Massachusetts suppliers.
 -- Raytheon's employees contributed $3.8 million to the United Ways
 throughout eastern New England. The company made an additional
 corporate contribution of $1.1 million.
 -- Additionally, Raytheon contributed $2.4 million to education,
 health, social services, civic, and cultural programs within
 Massachusetts during 1991.
 RAYTHEON COMPANY SELECTED FINANCIAL DATA
 4th Quarter, 1991
 Three Months Ended Year Ended
 Dec. 31 Dec. 31 Dec. 31 Dec. 31
 1991 1990 1991 1990
 Net sales
 (In billions) $2.429 $ 2.456 $9.274 $9.268
 Federal and foreign
 income taxes
 (In millions) $73.3 $72.6 $281.0 $279.6
 Net income
 (In millions) $157.8 $143.6 $591.8 $557.3
 Earnings per common
 share $2.37 $2.20 $8.95 $8.53
 Average number of common
 shares outstanding during
 period (In millions) 66.7 65.3 66.1 65.3
 Total backlog
 (In billions) $7.969 $8.810 $7.969 $8.810
 Government-funded backlog
 (In billions) $5.759 $6.566 $5.759 $6.566
 Total employees 71,600 76,700 71,600 76,700
 Segment Financial Data
 (Dollars in Millions)
 Sales Profit Before Tax
 1991 1990 1991 1990
 Electronics $5,329 $5,517 $643 $667
 Aircraft Products 1,098 1,074 106 80
 Energy Services 1,193 993 70 49
 Major Appliances 998 1,041 5 (8)
 Other Lines 656 643 49 49
 Totals $9,274 $9,268 $873 $837
 -0- 1/20/92
 /CONTACT: Ed Powers of Raytheon, 617-860-2415/
 (RTN) CO: Raytheon Company ST: Massachusetts IN: ARO SU: ERN


SH-PB -- NE011 -- 1434 01/20/92 13:02 EST
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Date:Jan 20, 1992
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